SC admits Tata Power plea on Sasan project

The Supreme Court today admitted Tata group's plea against the government's decision to allow Reliance Power (RPower) to use coal mined from blocks allotted to Sasan Power for other projects, but Anil Dhirubhai Ambani Group (ADAG) company said it is going ahead with implementation of its projects as per schedule.

ADAG said in a statement that the apex court had not stayed or passed any interim order against the Sasan project and RPower is proceeding ahead with the implementation of its projects as per schedule.

A bench of Justice GS Singhvi and Justice HL Dattu admitted the petition of Tata group company Tata Power and posted the matter for hearing in February next year.

"Let them be considered in detail," said the bench while admitting the Tata Power plea.

Tata Power has challenged the Centre's decision to allow RPower to use coal minded from blocks alloted to the Rs 20,000-crore Sasan Power Project for other power projects. It has accused the government of favouritism in taking such a decision.

"RPower’s 8,000 Mw of power projects in Madhya Pradesh are on schedule. There is no stay or any interim order passed by the Honourable Supreme Court in this regard.... RPower is proceeding ahead with the implementation of its projects as per schedule," the company statement said.

In November 2010, the apex court had issued notices to the Centre, the Ministry of Power, the Ministry of Coal, RPower, Power Trading Corporation on Tata Power's plea.

Tata Power has challenged the decision by the Empowered Group of Ministers to allow RPower to use excess coal from the captive mines meant for the Sasan project in Madhya Pradesh for another 4,000 Mw project at Chitrangi in the same state.

In August 2010, the government in an affidavit had said Tata's petition was "misleading and erroneous".

It had questioned the locus standi of Tata Power, saying, "The petitioner cannot allege violation of any legal right vis-a-vis tender process, as it waived its right by not extending the bid.

However, Tata Power had refuted these allegations in its rejoinder and submitted that bidding process for Sasan UMPP was never meant or intended to vest the successful bidder to extra coal supply of 9 million tonne per annum, which could be used for developing other power projects.